Should the Postal Service Offer Volume Incentives to E-Retailers?

Offering volume incentives is a common business practice in the U.S. and around the world. Although the U.S. Postal Service offers incentives to businesses that presort their mail, the agency does not offer incentives based strictly on the volume of packages shipped. One reason might be that offering volume incentives would lower the profit margin on each package shipped; yet, the potential volume increase of items shipped would make up for the smaller profit margins.

 

Is the Price Right?

The Postal Accountability and Enhancement Act of 2006 (PAEA) ushered in a new regulatory structure for the U.S. Postal Service. One key element was a price cap on market dominant products. (Most of the Postal Service's products are market dominant.) This means that price increases for market dominant products are capped by the rate of inflation as measured by the Consumer Price Index (CPI).

 

Reducing the Number of Prices

The Postal Service has more than 10,000 prices contained in a 1,800-page customer manual known as the Domestic Mail Manual (DMM). The DMM provides individual and commercial mailers with information about postal services and standards for both domestic and international mailings. The Price List, also known as Notice 123, contains domestic and international retail and commercial prices for all postal products and services.

 

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Recent Comments

  • 20 hours 48 min ago
    Ricky, I'm having the same issue. I mailed out about 20 or more vendor bill payments on April 10th, all are missing and have not cleared the bank. The post office said they are having major...
  • 21 hours 2 min ago
    I mailed about 20 to 30 vendor bill payments (checks) out on April 10, 2017. None of them have processed the bank, a second vendor had called today looking for a very important check we mailed out...

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